Capstone Infrastructure Corporation has announced it has made recent progress on a number of fronts the company had identified as priority action areas for the first quarter of 2016.
On March 21, 2016, Capstone completed an US$83 million project-level financing for the Cardinal gas co-generation facility, one of the company's key assets. The financing consists of a US$70 million term loan and a $US13 million letter of credit facility at attractive interest rates. The new US$70 million seven-year loan carries an interest rate of 2.68%, matures in 2023 and is scheduled to fully amortize over the remainder of the facility's non-utility generator agreement, which expires in 2034.
Concurrently with the Cardinal financing, the maximum amount of credit available under Capstone's revolving credit facility was reduced from US$90 million to US$60 million, and the drawn balance was fully repaid.
Capstone also closed a US$55.1 million non-recourse project financing for the 18 MW Grey Highlands Clean wind facility on March 24, 2016. The construction plus five-year loan carries an annual interest rate of 2.89% for the first three years and 3.12% for years four and five; it is scheduled to amortize over 18 years.
On the development side, the 10 MW Grey Highlands Zero Emission People (ZEP) wind farm in Ontario was commissioned on February 20, 2016. The 18 MW Ganaraska facility is expected to be commissioned next, in the second quarter of this year.
On March 21, 2016, Capstone secured a final order from the British Columbia Supreme Court approving the plan of arrangement under which a subsidiary of a fund advised by London, UK-based iCON Infrastructure LLP is to acquire all issued and outstanding common shares of Capstone and Class B exchangeable units of Capstone's subsidiary MPT LTC Holding LP for US$4.90 cash per share or unit, as applicable.
The arrangement was also approved by Capstone security holders at special meetings held earlier in March 2016. The arrangement is expected to be completed by early May of 2016 following fulfillment of certain closing conditions and receipt of regulatory approvals.